This is a duplicate of a thread I started in another forum and can't figure out how to delete the one in the other forum. Sorry.
I am trying to decide if I should pay off my ARM which is due in August or refinance. I ERed 4 years ago, at 56, and have a $50,000 per year CSRS Government pension which more than covers all my needs. I also have an IRA of about $225,000 and long term insurance. The proceeds will come out of my taxable accounts where the average return over the last three years is over 12 percent. It will leave about $60,000 . I will not touch the IRA and I'm single with no dependents and no other debts besides the house.
I'm 90 percent sure I am going to do this since my risk comfort level in a diversified portfolio to return over the 6 percent mortgage interest rate plus closing costs over the next 5 years is low.
I live in Eastern North Carolina where homeowner insurance rates are going through the roof. What do you forum members think of self-insurance? Do any of you do it? I'm talking about $2600 per year on a home I paid $188,500 for in 2005. If a storm did take my home I would not rebuild. However, I think that any storm damage would not be over $50,000, but even if a storm did destroy the house, it would not really change my standard of living.
I am trying to decide if I should pay off my ARM which is due in August or refinance. I ERed 4 years ago, at 56, and have a $50,000 per year CSRS Government pension which more than covers all my needs. I also have an IRA of about $225,000 and long term insurance. The proceeds will come out of my taxable accounts where the average return over the last three years is over 12 percent. It will leave about $60,000 . I will not touch the IRA and I'm single with no dependents and no other debts besides the house.
I'm 90 percent sure I am going to do this since my risk comfort level in a diversified portfolio to return over the 6 percent mortgage interest rate plus closing costs over the next 5 years is low.
I live in Eastern North Carolina where homeowner insurance rates are going through the roof. What do you forum members think of self-insurance? Do any of you do it? I'm talking about $2600 per year on a home I paid $188,500 for in 2005. If a storm did take my home I would not rebuild. However, I think that any storm damage would not be over $50,000, but even if a storm did destroy the house, it would not really change my standard of living.